Used Vehicle Values

Depreciation Continues to Follow Seasonal Trend

Overall truck values remained largely the same week-over-week. Two vehicle segments — subcompact and compact luxury crossovers/SUVs — realized the weakest performance of the week among trucks.

Image courtesy of Black Book.

Wholesale vehicle depreciation continued to accelerate last week, a trend that is expected to continue for the next few weeks, as seasonal patterns take hold, according to Black Book's July 8 Market Insights report.

Compact, midsize, and prestige luxury cars experienced the heaviest depreciation within the car segment, as values for the respective vehicles declined 0.55%, 0.62%, and 0.63%. Conversely, subcompact and luxury cars realized the lowest depreciation within the car segment at 0.04% and 0.08%, respectively.

Overall truck values remained largely the same week-over-week. Two vehicle segments — subcompact and compact luxury crossovers/SUVs — realized the weakest performance of the week among trucks. Values for these two truck segment vehicles fell 0.45% and 0.44% through the week.

Meanwhile full-size luxury crossovers/SUVs, compact vans, and small pickups had the strongest showing of the week at 0.07%, 0.08%, and 0.03% respective depreciation.

Overall used vehicle values are at strong levels. Crossover values are holding steady but there is cause for concern in the near future. Sedan values are expected to improve or stabilize as more crossovers enter the market.

Used Class 8 same dealers sales were down 10% in June and prices remained essentially flat, but this used truck dealers say that at current levels, sales and prices are still strong, according to ACT Research.